In light of the decision taken in the UK Government Budget to provide a permanent business rate discount for retail and hospitality busines…

The draft Budget published on 13 January ensures the estimated revenues raised from non-domestic rates in 2026-27 will be 6% lower in real terms than pre-COVID using the Consumer Price Index.The Budget continues to support businesses and communities with a strong non-domestic rates package for 2026-27 which decreases the Basic, Intermediate and Higher Property Rates in 2026-27, delivering the lowest Basic Property Rate since 2018-19.Businesses and communities will be supported with a generous non-domestic rates relief package worth an estimated £864 million in 2026-27, including the Small Business Bonus Scheme which remains the most generous scheme of its kind in the UK and is confirmed for the next three years, as well as transitional relief schemes.Recognising the challenges faced by the retail, hospitality and leisure sectors, for the next three years we will offer 15% relief for eligible properties in these sectors liable for the Basic or Intermediate Property Rates, capped at £110,000 per business per year; and extend and expand 100% relief for the next three years to retail, hospitality and leisure premises located on islands as defined by the Islands (Scotland) Act 2018, and in prescribed remote areas (Cape Wrath, Knoydart and Scoraig) capped at £110,000 per business per year.Around half of the properties in the Retail, Hospitality and Leisure sectors continue to be eligible for 100% SBBS relief in 2026-27. A further 37,000 properties could benefit from the new 15% relief for Retail, Hospitality and Leisure properties with a rateable value up to and including £100,000 and on Islands.Taken together around 89,000 properties (or 96%) across the three sectors could benefit from zero or reduced rates and the budget guarantees that support for the full three years of the revaluation.Scottish Government support Business Investment Districts (BIDs) as a model to help leverage local investment, encourage innovation, unlock opportunities, and deliver sustainable change and improvement for local places. We fund Scotland’s Improvement Districts (SIDs) as the National Centre for Improvement Districts in Scotland to provide advice and governance support for BIDs in Scotland. We also provide seed corn grant funding to support the initial development of new BIDs, subject to budget availability.BIDs are independent, business led partnerships that are established through a democratic ballot of local businesses. Their programmes of work are funded through a BID levy paid by local businesses within the BID area.